Government advisors give thumbs up for OMX-Nasdaq deal

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The offer from Nasdaq and Borse Dubai for OMX is a positive development for the Nordic stock exchange operator, according to a report by the Financial Markets Advisory Committee.

“We believe that Nasdaq OMX will be better able to retain and improve liquidity, turnover, and placements in the Nordic region than OMX could achieve on its own, considering the stronger brand and increased capacity for innovation,” said committee's chair Kerstin Hessius in a press release.

The Advisory Committee's final report, which was released on Friday, also found that Nasdaq OMX could better supply a modern marketplace than OMX could on its own.

If OMX continued independently, there was a risk that the exchange could lose turnover from larger companies to other larger exchanges.

“And it is the large cap stocks that generate profits,” said Hessius.

The Financial Markets Advisory Committee was created in 2006 to advise the government on how to strengthen Stockholm's position as a financial center.

In the report, the committee also stated that the government ought to review current law to ensure that American regulations aren't applied to the Stockholm stock exchange as a result of the deal.

“We don't believe that it could happen in reality. However, the mere concern may cause companies to list elsewhere,” added Hessius.

Hessius believes the deal will have a marginal impact on any specific company choosing to list on the Stockholm exchange.

Nor will the deal make it simpler to purchase American stocks simply because Nasdaq is taking over OMX.

In January, OMX's board approved the all-cash 265 kronor ($49.95) per share bid from Emirates-based Borse Dubai, and the subsequent planned acquisition by Nasdaq, following approval for the deal from U.S. regulators.